Drive-through drinks company Dutch Bros.’ shares jump 60% in their trading debut

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Dutch Bros. stock jumps 60% as drive-through drinks company makes trading debut

Shares of Dutch Bros., a Grants Pass, Ore.-based purveyor of coffee and other hot and cold drinks, soared 60% soon after they began trading on Wednesday in their first session as a public company.

Dutch Bros. is a franchise business, however the company stopped selling franchises to those outside of the existing network in 2008. In 2017, the company stopped franchising all together and moved to a company-operated model. As of June 30, 2021, there were 264 franchised shops and 207 company-operated locations.

Chief Operating Officer Brian Maxwell is Travis Boersma’s brother-in-law and Chief Administrative Officer Christine Schmidt is his sister-in-law. Shelley Broader joined the board in August. She is the former chief executive of Chico’s FAS Inc. CHS, +1.87% and served in a number of executive roles at Walmart Inc. WMT, +0.05% between 2009 and November 2015.

Dutch Bros. is an emerging growth company, which means it does not have to make the same disclosures required of bigger public companies. A business remains an emerging growth company until it reaches a number of milestones, including annual revenue of more than $1.07 billion.The company has no plans to pay a dividend on Class A and Class D shares. Class B and Class C shares don’t have dividend rights.Here are four more things to know about Dutch Bros.

 

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